Capability vs Competency: Understanding the Difference
Are you confused between the terms capability and competency? Though both the terms are used interchangeably, they are not the same. Capability and competency have subtle differences that are crucial and understanding them can significantly impact business growth and employee development.
What is Capability?
Capability refers to the ability of an individual or a team to perform certain tasks or activities. It is what a person or a group can do. Capability is based on knowledge, skills, and experience acquired by an individual or a team. These could be technical skills, people skills, or process skills.
For example, an individual who is capable of project management has knowledge of various project management methodologies, tools, and techniques. This person is skilled in planning, executing, monitoring, and controlling projects. They have the necessary experience in handling project risks, conflicts, and issues.
What is Competency?
Competency, on the other hand, refers to the behavior or attributes of an individual needed to perform a particular task or activity. It is how a person or a team performs a task or activity. Competencies are based on personality traits, abilities, and attitudes.
For example, a project manager who is competent in leadership, communication, and decision making, possess certain personality traits and attributes. They are able to build and lead a highly effective project team. They are able to communicate effectively with the stakeholders and gain their trust and support. They are able to make informed decisions with confidence.
Capability vs Competency: The Differences
Capability and Competency both play a crucial role in an individual’s and a team’s development. However, understanding the differences between the two is essential for evaluating an individual’s or team’s performance.
Capability is about what an individual or a team knows and can do, whereas competency is about how they use their knowledge and skills. Capability is demonstrated by the results an individual or a team delivers, whereas competency is reflected in their behavior and attitude while performing a task or activity.
For example, an individual who is capable of managing a team, may not necessarily be competent in leadership. Similarly, an individual who is competent in leadership, may lack technical capabilities needed to manage a team effectively.
The Importance of Capability and Competency
In today’s competitive business environment, it is not enough to have either capability or competency to succeed. Organizations need employees and teams who have both, as these can significantly impact business growth and development.
Capability helps individuals and teams to perform their tasks efficiently and effectively. It helps to improve productivity and quality, reduce costs, and drive innovation. Competency, on the other hand, helps to build trust and credibility, improve communication and collaboration, and lead change.
Therefore, it is crucial for organizations to assess an individual’s and a team’s capability and competency regularly, and provide them with opportunities to develop and improve. This can be done through training, coaching, mentoring, and job rotations.
Conclusion
In conclusion, capability and competency are two distinct concepts that play a crucial role in an individual’s and a team’s development. While capability refers to what an individual or a team can do, competency refers to how they use their knowledge and skills to perform a task or activity. Both capability and competency are essential for an individual’s and a team’s success in today’s competitive business environment. Therefore, it is crucial for organizations to assess, develop and improve both, to achieve growth and success.
